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Business Process Cost Reduction Checklist


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Business Process Cost Reduction Checklist Cost reduction can be achieved through process improvement. In this Business Process Cost Reduction Checklist you can find out how to reduce costs of a business process through implementing an improvement strategy. The checklist explains cost reduction as a procedure that takes three 3 steps.

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1.    Define Process Costs.

  • Direct labor costs, including operating labor and supervision, clerical labor, inspection, productivity changes
  • Indirect labor costs, including maintenance, housekeeping, medical surveillance
  • Utilities including electricity, water
  • Materials, including direct product materials, raw materials, transport, storage
  • Sales costs, including marketing, promotion, ad campaigns
  • Future liabilities, including fines, penalties, personal injury
  • Regulatory compliance costs, including inspections, training, workplace management, insurance

2.    Identify Improvement Opportunities.

  • Figure out if you can increase product quality through implementing best practice standards, including more appropriate product requirements, better design, more effective testing
  • Provide more effective process administration, portfolio management, time scheduling, project management, resource allocation, cost management
  • Involve key stakeholders who can provide valued feedback on your business process
  • Implement capacity and demand management to improve process scheduling and forecasting
  • Check if there is an opportunity to enhance service support and delivery to end-users
  • Review contractual relationships with vendors and check if there is an opportunity for improvement
  • Implement faster on-boarding of new personnel
  • Consider reducing time to be spent on meetings and conferences relating to your process
  • Try to reduce time necessary for process design and re-work
  • Prevent occurrence of any process-related disputes between in-house staff and third-party vendors
  • Provide personnel with necessary process documentation to reduce time spent on researching
  • Be sure your employees understand process goals and objectives
  • Provide training and development for in-house personnel

3.    Determine ROI.

  • Calculate the amount of payback received as your business process finished
  • Determine ROI by the formula...


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